MEMORANDUM

I am providing each of you a copy of the new policy statement on vacation payout for those non-aligned employees that separate from employment with NJIT during the period July 1, 2003 - June 30, 2005. This was presented and discussed at our June 30 meeting on the FY04 budget.

Please direct any questions on this new policy to Rod Bossert, assistant vice president for Human Resources. Thanks again for your support of this policy and helping with our current fiscal challenges.

Commencing July 1, 2003 and continuing through June 30, 2005, NJIT will effect a change in its previously existing practice of vacation payout with respect to the non-aligned staff. Any non-aligned employee separating from NJIT employment will be paid for two (2) weeks of accrued vacation time, or their actual accrued vacation, whichever is less. These funds are payable after the first full pay cycle following the last date of employment. In the event of an organizational-based layoff, separating employees will receive payment of up to one year's accrued vacation, i.e., three (3), four (4), or five (5) weeks depending on employment status, or their actual accrued vacation, whichever is less.

This change in practice is effected in order to meet the current fiscal challenges faced by the university, and anticipated to be faced in the following fiscal year, as a result of reductions in State appropriations. This change is generally consistent with the changes with respect to vacation payout that were negotiated by the university with its unionized constituency. These changes are intended, through the expenditure reductions realized, to avert the necessity of any fiscally-based position layoffs to meet the budgetary constraints under which the university is, and anticipates, operating.